(WHTM) — The United States economy grew stronger than expected this quarter, but that isn’t necessarily good news according to some experts.
In 2022, the United States economy showed a nearly three percent rise from July to September according to the annual GDP report.
The U.S. economy shrank in its first two quarters of 2022. However, the strong growth is a double-edged sword, experts say.
“That’s one indicator that the economy is actually staying relatively strong,” said Robert Caplan, financial expert. “It’s bad news, in that the feds got some more work to do. In trying to tamp down inflation.”
The GDP report highlights consumer spending, which has remained strong.
“Which is kind of counter to what the Federal Reserve is trying to achieve. The Federal Reserve is trying to slow the economy and reduce inflation by increasing interest rates,” Caplan added.
Fed chair Powel announced on Nov. 30, that Americans should expect more, but smaller, interest rate hikes.
“If I was a gambling man, I would bet that it’s going to be a 50 basis point hike in December,” said Alex Langan of the Langan Financial Group.
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All of this is to hopefully avoid a recession in 2023. However, the former treasury said a recession is more likely than not.
“It has never been so broadly well known that we’re heading into a recession,” Langan added.